Part 2 Plant and machinery allowances

Chapter 4 First-year qualifying expenditure

Types of expenditure which may qualify for first-year allowances

F145LExclusion of plant or machinery partly for use outside designated assisted areas

(1)

Expenditure on plant or machinery is not first-year qualifying expenditure under section 45K if—

(a)

at the time when it is incurred, the company incurring it intends the plant or machinery to be used partly in a non-designated area, and

(b)

the main purpose, or one of the main purposes, for which any person is a party to the relevant arrangements is the obtaining of a first-year allowance, or a greater first-year allowance, in respect of the part of the expenditure that is attributable to that intended use in a non-designated area.

(2)

For the purposes of subsection (1)(b), the part of the expenditure that is attributable to that intended use in a non-designated area is to be determined on a just and reasonable basis.

(3)

In this section—

“non-designated area” means an area which is not a designated assisted area within the meaning of section 45K;

“the relevant arrangements” means—

(a)

the transaction under which the expenditure is incurred, and

(b)

any scheme or arrangements of which that transaction forms part.